Switzerland's economic growth pace is set to slow sharply this year, but recover next year boosted by sporting events, the latest survey by the Organization for Economic Co-operation and Development, or OECD, showed on Monday.
The growth forecast for this year was cut to 0.8 percent from 1 percent seen in June, the Paris-based think tank said. The projection for next year was lowered slightly to 1.4 percent from 1.5 percent. The economy expanded 2.8 percent in 2018.
Growth in the alpine economy is projected to slow this year due to increased trade tensions, a deceleration in Europe and the fact 2018 was boosted by income from international sporting events, as Switzerland hosts related sports associations, the OECD said in its latest Economic Survey of Switzerland.
In 2020, underlying growth will remain moderate, but GDP will again be lifted by sporting events.
"Given Switzerland's open economy, risks to the outlook include escalating global trade tensions and economic uncertainty," the OECD report said. Switzerland's policy rate has been negative - at -0.75% - since 2015 and the Swiss National Bank's foreign reserves remain high.
Low interest rates are contributing to risks from housing market exposures and interest rate-related risks in the financial sector are high, the report warned.